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August 30, 2010 – Nebraska’s Senator Ben Nelson issued this statement today about a study done by Milliman, Inc., and efforts by the governor of Nebraska to use it to pit those who educate Nebraska’s children against those who advocate for their health care. He made similar points in an interview today with NET Radio.
“The governor’s study done by Milliman, Inc. is seriously flawed. Last December his own study done by the Nebraska Department of Health and Human Services estimated that expanding Medicaid in health reform would cost an additional $45 million up to 2019. That apparently wasn’t expensive enough. So, he reportedly spent $47,000 for a new study. Now the costs are way up and so are the questions.
“For example, the Milliman study anticipates 100 percent participation in the expanded Medicaid program under health reform. Medicaid is voluntary and voluntary programs never see 100 percent participation.
“Also, the governor’s new study assumes that about 60,000 people who have private insurance now will switch to Medicaid. Will that happen when private insurance generally is better than Medicaid, which also comes with a stigma for some?
“Next, the state’s Biennial Medicaid Report on December 1, 2009, projected Medicaid spending from 2005 to 2025 as of September 2009, before Congress passed health reform. The state estimated costs of slightly more than $1 billion starting in State Fiscal Year 2017-2018. The Milliman study estimated state Medicaid spending—as a result of health reform-- will be between $1.006 billion to $1.048 billion in State Fiscal Year 2018.So, the State had already projected that Medicaid spending would be at this level.
“Finally, the Milliman study ignores how health reform could reduce costs in various ways. Here's one way: Today Nebraska operates a state high-risk pool for people with preexisting conditions. It cost the state $25 million in 2009. Health reform will set up state exchanges in 2014; the high-risk pool program might not be needed. That could save the state $180 million from 2014 to 2020.
“Here’s the bottom line: the governor’s study is incomplete at best and intentionally misleading people at the worst. He builds his campaign against health reform on misinformation.
“It’s more troubling that he’s using that misinformation to intimidate groups involved in all aspects of our children’s health, safety and education, pitting one against the other.
“What I’m hearing from Nebraskans is they don’t want this kind of divisive politics to be played. Nebraskans expect people to work together. I spent eight years as governor working to unite Nebraskans under a theme of “One Nebraska.” Today, Nebraskans want to unite again and find ways to both educate our children and keep them healthy.
“In the end, the governor really is trying to avoid his biggest problem: an estimated $750 million state budget shortfall. He’s doing so with misinformation and with divisive politics, and Nebraskans do not expect that from the governor’s office.”
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